Effects of digitalisation of organisations on internal audit activities and practices

Betti, Nathanaël; Sarens, Gerrit; Poncin, Ingrid

doi:10.1108/maj-08-2020-2792

Cited by 21 publications

(36 citation statements)

References 61 publications

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“…In this perspective, data availability is a fundamental requisite for CA in general, and for managing misreporting risk in particular. If this important precondition is met, internal auditors are in the position to rely on data analytics techniques (Tang et al , 2017; Betti et al , 2021) to develop their own CA indicators, allowing them not only to mitigate misreporting risks, but also to create tailor-made measures specifically designed for auditing purposes.…”

Section: Implementation Challenges Of Continuous Auditing Systems: In...mentioning

confidence: 99%

Continuous auditing in public sector and central banks: a framework to tackle implementation challenges

Polizzi

Scannella

2022

JFRC

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Purpose This paper aims to analyse the implementation challenges faced by internal audit departments of public sector organisations and central banks when implementing continuous auditing (CA) systems. CA aims to monitor internal control systems and risk levels on a continuous basis to support the audit process. This study identifies the implementation challenges of CA systems and proposes adequate countermeasures. Design/methodology/approach This study employs the design science information system research and the design science research process methodologies to ensure the rigor of this analysis. These research methodologies are adopted to tackle identified organisational problems and propose solutions. This methodological approach consists in the following phases: identification of the problems and motivation; definition of the objectives of the solution; research design and development; evaluation; communication. Findings This study detects several implementation challenges for public sector organisations and central banks and proposes adequate solutions. This study finds that these challenges are related to organisations’ complexity, institutional rigidity, potential threats to internal auditors’ independence and the issue of considering CA system as a “real time error correction” mechanism. The solutions involve the development of a business process focussed audit approach to enable internal auditors to analyse CA indicators, and the use of CA systems to support each phase of the audit process. Originality/value This study contributes to the scant strand of literature on internal auditing in central banks. Given the exceptional demand for guidance concerning internal auditing in the public sector and in central banks, this paper provides guidelines for these organisations to implement CA systems and to tackle implementation challenges. The analysis allows internal audit departments within central banks to better support their organisations in the achievement of their important regulatory and policy objectives.

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Section: Implementation Challenges Of Continuous Auditing Systems: In...mentioning

confidence: 99%

Continuous auditing in public sector and central banks: a framework to tackle implementation challenges

Polizzi

Scannella

2022

JFRC

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“…The digitization of the facility increases the use of big data analytics by internal auditors and thus enables them to perform and develop more advisory, assurance and technology activities to continue to provide value to the organization (Betti, Sarens, poncin, 2021). This is according to what was stated by the Institute of Internal Auditors, and the Institute emphasized that value is added to the institution through achieving the objectives entrusted to it, adhering to policies, reducing risks, supporting evaluation, building and upgrading while ensuring independence and objectivity, and one of the most important roles and activities that enhance digital transformation techniques and add value to the institution following (for Khedrosalmi, 2021):…”

Section: • the Role Of Internal Audit Activities In Employing Digital...mentioning

confidence: 99%

Internal Audit Activities and Their Role in Employing Techniques to Support Digital Transformation in the Modern Business Environment

2022

RJFA

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This study dealt with the knowledge of the role of internal audit activities in their most important dimensions (technical activities, information security and confidentiality activities, internal control activities and risk assessment, governance activities, and human resource activities) in employing techniques to support digital transformation in the modern business environment. Preparing a questionnaire designed specifically for this purpose, and the study was applied to a sample of internal auditors, managers and board members of companies listed on the Palestine Stock Exchange. There is a great agreement between the opinions of the respondents on the subject of the study, and in light of the results of the study; It recommended the need to pay attention to strengthening all aspects and dimensions of internal audit activities, because of their significant positive role in promoting the application of digital transformation techniques, which would result in the advancement and upgrading of the holistic performance of companies.

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“…Moreover, the result of the study by Yustiani and Ichsan (2019) and Febrian and Darono (2020) shows that the ministry's inspectorate auditors in Indonesia have started using data analytics when carrying out audits. Several works of literature and the findings of previous studies have clarified that the use of data analytics can improve the IAF in providing AS (Cascarino, 2017;Betti and Sarens, 2020;van Veenstra et al, 2020;Betti et al, 2021;Rakipi et al, 2021). However, this has its challenges for internal auditors because it requires special skills (Earley, 2015;Kend and Nguyen, 2020;Appelbaum et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

“…However, this has its challenges for internal auditors because it requires special skills (Earley, 2015;Kend and Nguyen, 2020;Appelbaum et al, 2021). Betti et al (2021) examined factors that affect level of digitalisation and data analytics on consulting activities. They looked from the perspective of the application of digital technology.…”

Section: Introductionmentioning

confidence: 99%

The mediating effect of data analytics on the relationship between organizational psychological safety and advisory services

Sihombing

Agustia²,

Soewarno³

2023

MAJ

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Purpose Data analytics can change the working of advisory services (AS) that internal auditors routinely carry out. Not getting psychological support from employers and co-workers can cause internal auditors to be reluctant to use data analytics. Based on trait activation theory, this study aims to examine the mediating effect of data analytics on the relationship between organizational psychological safety (OPS) and AS. Design/methodology/approach The authors surveyed inspectorate auditors in government ministries and institutions who are internal government auditors in Indonesia. This study applied the partial least square structural equation modeling method to test the hypothesis. The total respondents involved in this study were 103 auditors. Findings There are two main findings in this study. First, OPS has a direct effect on AS. Second, data analytics mediates the relationship between OPS and AS. Practical implications This study’s finding has implications for leaders in ministries and government agencies to provide psychological support so that inspectorate auditors increasingly take advantage of data analytics in the process of AS that are always carried out. Originality/value To the best of the authors’ knowledge, this is the first study to examine the mediating effect of data analytics on the relationship between OPS and AS.

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Effects of digitalisation of organisations on internal audit activities and practices

Cited by 21 publications

References 61 publications

Continuous auditing in public sector and central banks: a framework to tackle implementation challenges

Continuous auditing in public sector and central banks: a framework to tackle implementation challenges

Internal Audit Activities and Their Role in Employing Techniques to Support Digital Transformation in the Modern Business Environment

The mediating effect of data analytics on the relationship between organizational psychological safety and advisory services

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